Genesis HealthCarethrough its parent company, private-equity firm Formation Capitalhas agreed to buy the bankrupt nursing home chain Haven Healthcare, Connecticut Attorney General Richard Blumenthal said. Formation will pay approximately $84 million for 24 out of 25 Haven Healthcare nursing homes in Connecticut and four other New England states, he said.
The pending deal is the result of a months-long search and negotiations to prevent the nursing homes from folding, he added in a news release. The deal requires court approval; a hearing is scheduled for June 26. Haven operated 15 nursing homes in Connecticut before it collapsed late last year, according to Blumenthal. The corporation, through Chief Executive Officer Raymond Termini, allegedly mismanaged millions of dollars and diverted public funds intended for patient services to improper investments in a record company and personal real estate, Blumenthal said.
Blumenthal vowed to aggressively continue the investigation into Havens corporate leadership. This landmark sale agreement is a key turning pointending a regime of emergency intensive care for the nursing home chain, and protecting thousands of patients and jobs, Blumenthal said in the news release. Havens Chief Restructuring Officer Benjamin Jones declined to comment. -- by Cinda Becker